Bigger Picture

EDXC was added to the portfolio Tuesday, so its chart is reviewed first. Other holdings reviewed are ATTBF, ERBB, ENTR and SPLI. Next, I discuss two stalking candidates that hit their relevant price but aren”t behaving convincingly enough, TRTC and FITX.

GWPH was big news, popped big, and may have a big drop in its future. I review its chart and my sell signal, then introduce a new chart to begin monitoring, FSPM.

MCIG, BRDT, and MINE each looks attractive, except for not attracting buyers. TWDMJF is starting to behave predictably, and CBDS behaved enormously, two charts we reviewed for fun.

I answered several questions from the Activity Feed, including some stock requests: CARA, OSLH, AERO and PLPL.

Enjoy!

Livedesk is happening… wait for it… .wait for it… NOW! (actually, in another minute)

An interesting morning. Here are a few updates, and we”ll do a Livedesk at 11:15am ET…

GWPH — Indicated gapped up and ran $18 to test 64 on a brokerage upgrade. The chart doesn”t justify a bottom at this stage, but that doesn”t matter when Morgan Stanley is on the other side of the trade. Nevertheless, the reaction confirms two big points I”ve been making. First, our marijuana sector had shed pretty much all available sellers at its recent low. Second, the sizable painful pullback would not prevent the sector from gaining bigger interest. I hope that is clear to all.

Anyway, I”ll be monitoring the for a short-entry, more for timing than for price. But, basically, a blip-up to 62.75 would be vulnerable to reacting back down intraday to 54. There is a bigger attraction down to 46.25, which is still vulnerable to being probed for a new low.

Here”s a third big point, previously unmade: The GWPH surge is staling oxygen from the room. ENRT, EDXC, VAPE, FITX, SPLI, TRTC, ERBB, ATTBF, etc. Some members of the sector are doing well, and so should others (not ALL of the others, read today”s Filter This column). It”s a good problem to have, GWPH getting all the headlines for a day.

Other notes:
SPLI — The open”s surge has retraced back into yesterday”s range. The pattern is free to resume its opening surge, but required only to hold support.
TRTC — Nice recovery intraday, even if only momentary, from and opening dip back to yesterday”s lows and into my buy zone (which I still haven”t pulled the trigger on)
ENRT — Probing even further this morning under my .36 support. I”ll buy more just under .30 which is a 61.8% retracement of the upleg.
ATTBF — Retesting yesterday”s lows.
ERBB — RSIs are diverging positively (a favorable technical formation) into the open”s dip, and closing back above .55 should launch the next upleg.

Today”s filter is… patience.

It”s a virtue, right? Ever notice the people who keep telling us that are the ones we”re waiting on? Sometimes, they”re right.

Did the marijuana sector begin bottoming at last week”s lows? It”s not yet assured, but it”s the first credible effort that I”ve seen since March”s highs. It seemed like a long time coming, but if an actual bottom is now forming, then correction”s duration did not take an inappropriate time. 

Rome wasn”t burnt in a day.

The actual topping, itself, didn”t happen overnight. While some stocks in the sector were obviously peaking, others were pushing higher. That dichotomy was deceptive. You”ll recall that if you were involved in this sector at that time. Study it. It”s going to happen again, upside down, only worse.

During the correction when I wasn”t able to find stocks that had bottomed, I wrote in this space about some of the correction”s benefits. One was the cathartic aspect of forcing investors to look closer at the stocks they were buying. The bottom — whether or not it”s happening now — won”t be a bottom for all stocks in our sector. Some won”t attract back buyers and analysts that have been trained to be more discerning.

Patience can be a virtue. But not if you”re waiting on a loser to perform the way they did into March.

If last week did market the correction”s end, then even some of the stronger recoveries will first revisit their lows. Maybe not entirely, and maybe a little deeper. Careful not to be swayed by that happening to so many that you are convinced to continue holding the wrong few.

We”re going to try melding the older “Need to Know” video format with the newer “Open”s Interest” actionable parameters. The market discussion and stock color will be described on both the blog post and the video. Let me know if the video is more beneficial to you than an annotated chart… Enjoy!

Starting with SPLI which was bought late Monday, the video”s first topic is the portfolio”s current holdings. That also includes ATTBF, ENRT and ERBB.

Stocks I”m watching on Tuesday, and their parameters, are:

EDXC Closed above my resistance, so I”ll try to buy weakness intraday under .185

FITX Weakness under .081, if not also then a recovery back above .05, would be compelling.

MCIG dipping to .54-.56 and also recovering .59 should provide a rubber band effect.

TRTC Getting a love-hate relationship, as I love how the pattern handles dips, but I hate that its bounces fail to gain traction. I”ll give it a look under .70

BRDT The bounce had lost momentum, but Monday”s dip may be forming a bullish inverted Head & Shoulders that would trigger above .49

MINE Recovering from an intraday dip under ,025 back above .026 should be sufficient to refuel the rally underway. I”ll watch for other setups.

NVLX Above .37 would signal the consolidation had ended.

TAUG Under .52 and/or above .55 could be the trigger that jump starts a rally leg.